DRAFT CUSTOMS CONTROL RULES FOURTH BATCH NOTE TO STAKEHOLDERS

DRAFT CUSTOMS CONTROL RULES FOURTH BATCH NOTE TO STAKEHOLDERS Please note that the various Chapters of the Control Act deal comprehensively with the topics dealt with in the corresponding Chapters of the rules. The function of the rules contained in a particular Chapter is simply to facilitate implementation of the relevant Chapter of the Act where, for instance, a provision of that Chapter requires details to be prescribed by rule. As a subsidiary instrument, the rules cannot and should not be read in isolation of the relevant Chapter of the Act. Each rule must be read together with the empowering or other applicable provision indicated for the particular rule. Due date for comments: 30 January 2015 Comments to be submitted to Ms S Authar at sauthar@sars.gov.za 1

CHAPTER 32 RECOVERY OF DEBT UNDER CONTROL ACT 1 Definitions 32.1 In this Chapter credit push means a payment transaction initiated through efiling, presented as a payment request to the bank of the person making payment, for which an authorisation by that person is required; instalment payment agreement means an agreement entered into by a person liable for a debt referred to in section 695 of the Control Act and the Commissioner for payment of the debt in instalments as envisaged in section 702 of the Act; payment advice notice means a notice generated by the customs authority upon request by a person liable for a debt, in respect of a payment to be made by that person, which reflects the name of the person making payment; (c) (d) the relevant payment reference number; the transaction or transactions being settled, and the amount to be paid; payment reference number means a unique 19-digit number allocated by the customs authority to identify a payment and ensure the correct allocation of the payment in a notice demanding payment of an amount owed to the Commissioner, or in an instalment payment agreement referred to in rule 32.11 as processed by the customs authority; 1 Note that this Chapter applies only to the recovery of debt that becomes payable to the Commissioner under the Control Act. The recovery of tax and other debt, including the payment of refunds, under the Customs Duty Act and the Excise Duty Act is regulated by those Acts. 2

SWIFT message means a secure and standardised payment message sent electronically by one financial institution to another through the Society for Worldwide Inter-bank Financial Telecommunication (SWIFT) network. Part 1: Methods of payment and conditions for such payment Methods that may be used to pay debt to the Commissioner (section 706) 32.1 (1) The following payment methods may be used to pay a debt to the Commissioner, subject to subrule (2): Cash payment; (c) cheque payment; (d) payment by electronic funds transfer, including payment effected by using SWIFT message in the case of international payments; (e) credit push payment initiated through efiling; and (f) debit or credit card payment. (2) If a person making payment in terms of this Chapter is registered for efiling, the payment method referred to in subrule (1)(e) must be used. Conditions and requirements for cash payments (section 706(i)) 32.2 (1) Cash payments may be made at any Customs Office during the office hours determined for that Customs Office in terms of section 14(1)(c)(i) of the Control Act. (vi) 50c in 5c coins. (2) The maximum amount of cash that may be paid per transaction at a Customs Office is limited to (i) R 2000,00 in bank notes; (ii) R 50,00 in R5 coins; (iii) R 20,00 in R2 coins; (iv) R 20,00 in R1 coins; (v) R 5,00 each in 10c to 50c coins; and 3

Paragraph does not apply to payments at a place of entry or exit made by travellers and crew members entering or leaving the Republic. (3) All cash payments are rounded off to the nearest 5 cents, to the benefit of the person making payment. (4) A cash payment must be accompanied by a payment advice notice that is not older than seven calendar days. Conditions and requirements for payment by cheque (section 706(i)) 32.3 (1) The following conditions apply to payments made by cheque: (c) (d) (e) (f) A cheque must be signed and made out to South African Revenue Service in any of the official languages of the Republic and the payment must be reflected in Rand; no cheque payment may be made by a person in respect of whom two cheques made out to the South African Revenue Service had been referred to drawer in the three years preceding the date of payment; a cheque exceeding an amount of R10 000 must be bank guaranteed; the total amount for payment made by cheque by the same person per day is R50 000, irrespective of the number of cheque payments required to be made on that day; no post-dated cheques will be accepted; and a cheque payment must be supported by a payment advice notice that is not older than seven calendar days. Conditions and requirements for payments by electronic funds transfer (section 706(ii)) 32.4 The following conditions apply in respect of payments made by electronic funds transfer through internet banking facilities: Electronic funds transfers may be done only through internet banking facilities of banks where SARS is listed on the bank s preconfigured beneficiary ID listing, by selecting the applicable SARS beneficiary identification code; in the case of electronic fund transfers effected by using SWIFT message 4

(c) (i) payments may be done only through the internet banking facilities of a bank which supports payment effected by using SWIFT message; and (ii) the SARS beneficiary identification code for foreign payments must be indicated; and a payment by electronic funds transfer must be supported by a payment advice notice which must be submitted to SARS. Requirements for credit push payment initiated by efiling (section 706(iii)) 32.5 A person who wishes to make use of the credit push payment method must be registered for efiling; and make use of a bank that supports this payment method. Conditions and requirements for debit or credit card payments (section 706(iii)) 32.6 The following conditions apply in respect of debit or credit card payments: Payments by debit or credit card may be made by a traveller or a crew member when entering or leaving the Republic at the place of entry or exit or, in the case of rail travellers and crew, at the rail travellers terminal (i) where that traveller or crew member is processed through the (c) (d) (ii) Passenger Processing System; or in the case of a trusted or frequent traveller, where that traveller is processed at a self-service facility for trusted or frequent travellers; payment must be in Rand; the traveller or crew member or other person tendering the card must be the account holder; and only approved debit or credit cards as indicated on notice boards at the relevant traveller terminal or Customs Office may be accepted. 5

Part 2: Payment of debt in instalments (section 702 and (d)) Conditions for payment of debt in instalments 32.7 Debt referred to in section 702 of the Control Act may be paid in instalments only if the customs authority has in terms of this Part entered into an instalment payment agreement referred to in rule 32.12 with the person liable for the debt. Applications for instalment payment agreements 32.8 (1) A person who is liable for debt referred to in section 702 of the Control Act and who cannot pay the debt in a single payment may apply to the Commissioner electronically through efiling, subject to paragraph, for permission to pay that debt in instalments. If an application is submitted to the Commissioner in paper format in circumstances where submissions in paper format are permissible, 2 the submission (i) must be on Form.. published as a rule on the SARS website for the relevant purpose; and (ii) may be submitted to any Customs Office. (3) An application must reflect the following information in relation to the applicant: (i) The applicant s customs code, or if the applicant does not have a customs code, the applicant s name, physical address and contact details; (ii) if the applicant is a natural person, identity or passport number; and (iii) if the applicant is a juristic entity, the name of the person authorised to act on behalf of the entity, as well as that person s physical address, contact details, identity or passport number and capacity; the reference number of any document that demanded payment of the debt; (c) the kind and amount of the debt owed to the Commissioner; (d) the reason why the applicant cannot pay the debt in a single payment; 2 See section 913(4) of the Control Act. 6

(e) whether the applicant anticipates income or other receipts which can be used to satisfy the debt, including a list of such anticipated incomes or receipts indicating the date when the income or receipt is expected; (f) details of (i) the applicant s assets, investments and policies, including a description of the asset, the type of investment or policy, the name of the institution and the relevant values and, if applicable, maturity dates; (ii) the applicant s debtors and creditors including names and contact details and amounts owed or owing; and (h) (i) (iii) contracts or tenders awarded to the applicant, if any, including the name of the institution or contracting party, the contract or tender number, the contract or tender value and the commencement and completion dates; the proposed repayment period, which may not exceed a period of twelve months; 3 and the name and contact details of the applicant s auditor or financial adviser. (3) An application referred to in subrule (1) must be supported by the applicant s bank statements for a period of six months preceding the application, certified by the bank; evidence of the applicant s financial resources and liabilities, which may consist of (i) (ii) a copy of the applicant s audited financial statements for the financial year preceding the date of application; or in the absence of such financial statements, an auditor s certificate to this effect; (c) documentary evidence of the applicant s (i) assets, investments and policies, including a description of the asset, the type of investment or policy, the name of the institution and the relevant values and, if applicable, maturity dates; (ii) debtors and creditors including names, contact details and amounts owed or owing; and 3 This period is subject to extension in terms of section 908 of the Control Act. 7

(d) (e) (iii) contracts or tenders awarded to the applicant, if any, including the name of the institution or contracting party, the contract or tender number, the contract or tender value and the commencement and completion dates; in the case of the applicant being a juristic entity, a certified copy of the document authorising the person who submitted the application on behalf of the entity, to act on behalf of the entity; and a certified copy of the identity document or passport of any authorised person referred to in paragraph (d). (4) Supporting documents referred to in subrule (3) must be submitted to the Commissioner together with the application referred to in subrule (1). Consideration of applications and notification of decisions 32.9 An application for permission to pay that debt in instalments referred to in rule 32.8 may be approved or refused, and the applicant is entitled to be notified of the decision. Qualification criteria for payment of debt in instalments 32.10 The qualification criteria for the payment of debt in instalments are as follows: (c) (d) (e) The applicant suffers from a deficiency in assets, funds or liquidity and it is reasonably certain that that deficiency will be rectified in the near future; the applicant anticipates income or other receipts that will be available for satisfying the debt; the prospect of immediate recovery of the debt is poor or uneconomical but is likely to improve in future; activity to recover the debt would be harsh in the particular case and the instalment payment agreement is unlikely to prejudice tax collection; and the applicant provides security as may be required by the Commissioner. 8

Instalment payment agreements 32.11 (1) After being notified of the approval of an application in terms of rule 32.9 the applicant must complete the instalment payment agreement as published as a rule on the SARS website for that purpose. (2) An instalment payment agreement must contain at least the following details: The customs code of the debtor, or if the debtor does not have a customs code, the debtor s name, physical address and contact details; in the case of the debtor being a juristic entity, the name of the person authorised to act on behalf of that entity, as well as that person s physical address, contact details, identity number or passport number and capacity; (c) the type of debt; (d) the amount of the debt; (e) the interest rate applicable; (f) the instalment amount; (g) the repayment period; and (h) conditions for (i) the repayment in instalments as may be determined by the Commissioner in the specific case to secure the collection of the debt; and (ii) the amendment and termination of the agreement. (3) An instalment payment agreement must be signed by the parties to the agreement; and be submitted manually together with the supporting documents referred to in subrule (3), to any Customs Office. (4) An instalment payment agreement must be supported by in the case of a natural person, a certified copy of that person s identity document or passport; 9

(c) in the case of a juristic entity, a certified copy of the document authorising the person who signed the agreement on behalf of the entity, to act on behalf of the entity; and a certified copy of the identity document or passport of any authorised person referred to in paragraph. (5) When an instalment payment is made to the Commissioner, the payment must be supported by a payment advice notice which must be submitted to SARS. Part 3: Refunds of administrative penalties, interest on penalties, and other payments made to Commissioner in terms of Control Act (section 706(c)) 4 Circumstances in which refunds may be claimed 32.12 (1) A refund of any administrative penalty, interest or other payment made to the Commissioner in terms of the Control Act may be claimed only if the penalty, interest or other payment was paid in error (i) on or in respect of goods or in circumstances in respect of which it was not payable; (c) (ii) (iii) by a person not liable for that penalty, interest or payment; due to a clerical, typographical, electronic or other administrative fault or an incorrect assumption on which the calculation of the penalty, interest or other payment was based; any action taken in terms of Chapter 37 of the Control Act against the penalty, interest or other payment or the amount of the penalty, interest or other payment is successful; or a final judgement of a court creates an entitlement to a refund of a penalty, interest or other payment or a part of the amount of the penalty, interest or other payment. 4 Note that this Part deals only with refunds of payments made to the Commissioner in terms of the Control Act. Refunds of payments made in terms of a tax levying Act, are dealt with in the relevant tax levying Act. 10

(2) A person who has paid an administrative penalty or interest or has made any other payment to the Commissioner in terms of Chapter 32 of the Control Act in circumstances to which subrule (1) applies, may apply in terms of rule 32.13 to the customs authority for a refund of that penalty, interest or other payment. Application for refund of administrative penalties, interest and other payments 32.13 (1) A person may apply for a refund of an administrative penalty, interest or other payment made to the Commissioner by submitting an application within the timeframe referred to in rule 32.14 to the customs authority electronically through efiling, subject to paragraph. If an application is submitted to the customs authority in paper format in circumstances where submissions in paper format are permissible, 5 the submission (i) (ii) (c) (d) (e) must be on Form.. published as a rule on the SARS website for the relevant purpose; and may be submitted to any Customs Office. (2) An application referred to in subrule (1) must reflect the following information in relation to the applicant: (i) The applicant s customs code, or if the applicant does not have a customs code, the applicant s name, physical address and contact details; (ii) if the applicant is a natural person, the applicant s identity number or passport number; (iii) if the applicant is a juristic entity, the name of the person authorised to act on behalf of the entity, as well as that person s physical address, contact details, identity or passport number and capacity; the type of debt in respect of which the refund is applied for; the reference number of any document that demanded payment of the debt; the amount of the debt paid and the date of payment; the circumstance referred to in rule 32.12(1) which justifies the application for a refund; 5 See section 913(4) of the Control Act. 11

(f) in the case of the applicant relying on a circumstance referred to in rule 32. 12(1) or (c), the date of the decision in any Chapter 37 proceedings or of the final judgement of a court; (g) whether the applicant has any outstanding debt with the Commissioner; and (h) in the case of an applicant who does not have a customs code, full details of the applicant s bank account. (3) An application referred to in subrule (1) must be supported by in the case of an applicant who does not have a customs code (i) a document confirming the applicant s banking details, including the name of the bank, the account holder s name, the account type and number, and the branch code, which may be (aa) (bb) a bank certified original bank statement or a legible bank certified copy of an original bank statement; a bank certified original auto bank statement; or (ii) an original letter from the applicant s bank on an official bank letterhead; in the case of the applicant being a juristic entity (i) a certified copy of the document authorising the person who submitted (c) (ii) the application on behalf of the entity, to act on behalf of the entity; and a certified copy of the identity document or passport of any authorised person referred to in subparagraph (i); and documentary evidence of the circumstance referred to in rule 32.12(1) which the applicant relies on for justification of the application, which may include (i) (iii) (iv) proof of payment reflecting an amount erroneously paid referred to in rule 32.12(1) and any documents evidencing the error; a notification by the customs authority of the outcome of any action taken in terms of Chapter 37 of the Control Act referred to in rule 32.12(1); or the final judgement of a court referred to in rule 32.12(1)(c). Time within which applications for refunds must be submitted 32.14 (1) An application for a refund in terms of this Part must be submitted to the customs authority within a period of three years from the date on which the 12

amount reclaimed in terms of the application was paid, or if the amount was paid in instalments, from the date the first instalment was paid. (2) Subrule (1) does not apply if the entitlement to, or the extent of, a refund is determined or otherwise affected by a decision in any administrative appeal or dispute resolution proceedings or a dispute settlement, and in such a case an application for the refund must be submitted to the customs authority within 180 calendar days from the date the decision was given or the matter was settled, as the case may be; or a final judgement of a court, and in such a case an application for the refund must be submitted to the customs authority within 180 calendar days from the date the final judgement was given. (3) If the grounds for a decision given in any appeal or dispute resolution proceedings referred to in subrule (2) or in a final judgement referred to in subrule (2) will, when applied to administrative penalties, or to interest on administrative penalties, or to other payments made to the Commissioner in terms of Chapter 32 of the Control Act that were not the subject of those proceedings or judgement, also affect those other penalties, interest or payments, applications for refund may in terms of subrule (2) or be submitted only in relation to those payments that were made after a date 6 three years prior to the date of payment of the penalty, interest or other payment that was the subject of those proceedings or judgement. Consideration of applications 32.15 (1) In order for the merits of an application for a refund to be considered, the application must be a valid application. (2) An application is valid if the applicant is in terms of rule 32.12 competent to submit the application; the application complies with rule 32.13; (c) the application was submitted within the applicable timeframe referred to in rule 32.14(1) and (2); and 6 This covers all payments during the period from this date up to the date of the decision or final judgement and also payments made after the date of the decision or judgement which are not consistent with judgement. the decision or 13

(d) the application qualifies in terms of rule 32.14(3), if that rule applies. (3) If the customs authority invalidates an application in terms of subsection (2) it must notify the applicant of the invalidation, the date of invalidation and the reason for the invalidation. If the customs authority validates an application in terms of subsection (2), it must notify the applicant of the validation and the validation date. (4) The customs authority must consider a validated application on the merits and, within 21 working days of validation of the application, either (c) approve the application and pay the refund to the applicant; refuse the application; or reject the application on technical grounds. Interest payable on refunds (section 706(c)) 32.16 (1) If a person becomes entitled in terms of this Part to claim a refund of administrative penalties, including interest on such penalties, and of other payments paid to the Commissioner, no interest is payable on the amount of that penalty or interest, or of that other payment except as provided for in subsection (2). (2) If the customs authority fails to pay a refund approved in terms of rule 32.15(4) within the 21 working days period referred to in that rule, the applicant is entitled to interest, at a rate determined by the Minister, on the amount of the refund or drawback, for a period commencing on the expiry of that 21 days period up to the date of payment of the refund or drawback. (3) Interest determined in terms of subsection (2) must be calculated on daily balances owing and compounded at the end of each month. Recovery of refunds paid in certain circumstances 32.17 (1) A person to whom a refund was paid in terms of this Part is obliged to repay the amount of the refund to the Commissioner if payment of the refund was made in error. 14

(2) A repayment referred to in subrule (1) must be made as the customs authority may direct in the demand for repayment. Set-off of refund against amount owing 32.18 (1) When a refund becomes payable in terms of this Part to a person who has failed to pay an amount of tax, duty, levy, charge, interest or administrative penalty levied or imposed under the Control Act or any other legislation administered by the Commissioner within the period required for payment of the amount, the customs authority may set off the amount of such refund against the amount which that person has failed to pay. 7 (2) Subsection (1) may not be applied to an amount of outstanding tax, duty, levy, charge, interest or administrative penalty if the customs authority has in terms of section 830 of the Control Act suspended or deferred payment of that amount pending institution or conclusion of proceedings in terms of Chapter 37. 7 Please note that if payment of an amount of tax, duty, levy, charge, interest or administrative penalty has been deferred to a future date, that amount only becomes payable at that future date. Consequently there cannot be a failure to pay the amount before that date. It also follows that if a refund is paid before that date, the refund cannot be set off against the deferred amount before that date. 15

CHAPTER 33 GENERAL ENFORCEMENT FUNCTIONS Definitions 33.1 In this Chapter non-lethal weapon means a defensive baton, oleoresin capsicum (OC) spray or a tazer; official instructions means any instructions issued by the Commissioner; or a customs officer in a supervisory capacity acting within his or her delegated mandate; protective and defensive equipment means shields, protective vests, helmets, handcuffs, cuff strips, holsters, leg holsters, tactical belts, tactical gloves, knee pads or elbow pads. Part 1: Use of scanning equipment and other mechanical, electrical, imaging or electronic appliances for inspection of goods (section 751(1)) Conditions for use of scanning equipment and other appliances 33.2 Scanning equipment and other mechanical, electrical, imaging or electronic appliances that may in terms of section 722(3)(ii) of the Control Act be used for examining goods may be operated only by customs officers accredited to do so; and must, if used on a person, be of a non-intrusive nature. Avoiding or interfering with scanning equipment and other appliances 33.3 (1) If any scanning equipment or other mechanical, electrical, imaging or electronic appliance referred to in section 722(3)(ii) of the Control Act is installed or being operated by customs officers at the entrance to any restricted area which is or forms part of a customs controlled area no person may without permission of the customs authority enter that area otherwise than through that entrance. 16

(2) If any scanning equipment or other mechanical, electrical, imaging or electronic appliance referred to in section 722(3)(ii) is installed or being operated by customs officers in a customs controlled area for purposes of examining goods, including goods on a person or in a package or container, no person may interfere or cause an interference with the equipment or appliance in order to deceive; or do anything to prevent the equipment or appliance from producing (i) a true image of the goods or of the contents of the package or (ii) container; or a true result of the purpose for which it is used. Cargo scanning equipment 33.4 (1) Cargo scanning equipment may be used at the Durban customs seaport; the Cape Town customs seaport; and (c) the land border-post at Beit Bridge. (2) All containers imported or to be exported through the places of entry or exit referred to in subrule (1) selected by the customs authority must be presented for scanning. (3) Cargo scanning equipment must at all times be operated by at least two customs officers. Part 2: Carrying, custody and use of firearms and ammunition by customs officers (section 751(1)) Issue of firearms to customs officers (section 741(2)) 33.5 A customs officer in the category of customs officers that may carry firearms as contemplated in section 741(1) of the Control Act must comply with the following pre-qualifications before a firearm may be issued to the officer: The officer must be in possession of a valid competency certificate issued in terms of the Firearms Control Act, 2000 (Act No. 60 of 2000); 17

(c) (d) the officer must successfully have undergone psychometric evaluation; the officer must comply with the requirements of section 9(1) of the Firearms Control Act, 2000; and the officer must give a written undertaking to control and use the firearm strictly in accordance with Part 6 of Chapter 33 of the Control Act, these Rules, the Firearms Control Act, 2000, and any official instructions. Conditions subject to which firearms are issued 33.6 A firearm is issued to a customs officer subject to the following conditions: During the officer s official working hours, the firearm (c) (d) (e) (i) (ii) must be carried by the officer on his or her person in accordance with official instructions or protocol; and may be left in the custody of another person only if permission has been granted by the officer s supervisor. When off-duty the officer may retain possession of the firearm and any ammunition issued to the officer only if (i) permission has been granted by the officer s supervisor; and (ii) the firearm and ammunition is secured in a gun safe at the officer s place of residence approved in terms of the Firearms Control Act, 2000. The officer must attend at least four practical training sessions at a shooting range which complies with the applicable compulsory specification set in terms of the Standards Act, 1993 (Act No. 29 of 1993), and which is accredited in terms of the Firearms Control Act, 2000. A training session referred to in paragraph must include the actual firing of a firearm of the type issued to the officer. The firearm or ammunition issued to the officer may not be used for hunting, recreational or other private purposes. (f) The Commissioner may at any time (i) request the officer to return the firearm; or (ii) instruct another customs officer to remove the firearm from the officer s possession. 18

Shooting incidents 33.7 (1) Whenever a firearm issued to a customs officer is discharged, the officer must immediately submit a report on the incident to his or her supervisor. (2) A shooting incident report referred to in subrule (1) must be submitted on Form.as published as a rule on the SARS website; and state (i) the circumstances in which, and the reasons why, the firearm was discharged; (ii) whether any person was injured in the incident and, if so (aa) (bb) the name and address and other personal details of the injured person that are available to the officer; and the nature of the injury and whether it was fatal or not; (iii) whether any goods were damaged in the incident and, if so (iv) (v) (aa) the name and address and other personal details of the owner or person in whose possession the goods were, that are available to the officer; and (bb) the nature and extent of the damage; whether the incident was reported to the South African Police Service, and if so, the Crime Administration System (CAS) number issued by South African Police Service; and any other information required on the form. (3) This rule does not apply if the firearm is discharged for purposes of official target practice. Use of ammunition 33.8 (1) A customs officer to whom a firearm has been issued must within five days after the end of each calendar month report to his or her supervisor the amount of any ammunition rounds used during that month. (2) An ammunitions report referred to in subrule (1) must be submitted on Form.as published as a rule on the SARS website; and 19

state (i) the number of rounds used; (ii) the calibre; (iii) the purpose for which those rounds were used; and (iv) any other information required on the form. Theft, loss or damage to firearms or ammunition 33.9 (1) A customs officer to whom a firearm has been issued must immediately report to his or her supervisor any theft or loss of, or damage to, the firearm or any ammunition issued for official use. (2) A theft, loss or damage report referred to in subrule (1) must be submitted on Form.as published as a rule on the SARS website; and state (i) (ii) (iii) the circumstances in which the firearm was stolen, lost or damaged and, if damaged, the nature of the damage; whether the incident was reported to the South African Police Service, and if so, the Crime Administration System (CAS) number issued by South African Police Service; and any other information required on the form. Non-compliance or negligence ground for disciplinary, dismissal or criminal proceedings 33.10 A customs officer to whom a firearm has been issued is subject to disciplinary or dismissal proceedings and, when appropriate, criminal proceedings, if the officer contravenes or fails to comply with a provision of (i) Part 6 of Chapter 33 of the Control Act; (ii) a rule contained in this Part; or (iii) the Firearms Control Act, 2000; or acts negligently in the use of the firearm or in his or her possession of the firearm or ammunition issued for official use. 20

Part 3: Custody and use of non-lethal weapons and protective and defensive equipment by customs officers (section 751(1)) Issue of non-lethal weapons to customs officers 33.11 A customs officer must comply with the following pre-qualifications before a non-lethal weapon may be issued to the officer: The officer must successfully have undergone appropriate training in the use of non-lethal weapons of the type to be issued to the officer; the officer must successfully have undergone psychometric evaluation; and (c) the officer must give a written undertaking to control and use the non-lethal weapon strictly in accordance with any official instructions. Conditions subject to which non-lethal weapons and protective and defensive equipment are issued 33.12 A non-lethal weapon and any protective and defensive equipment are issued to a customs officer subject to the following conditions: The non-lethal weapon and protective and defensive equipment may not without the permission of that officer s supervisor be left in the custody of another person. (c) (d) The non-lethal weapon and protective and defensive equipment must after every shift be returned to the SARS official responsible for the custody of firearms, non-lethal weapons and protective and defensive equipment. The officer is subject to periodic training in control and defensive tactics and scenario-based training as the Commissioner may require. The non-lethal weapon and protective and defensive equipment may not be used for private purposes. (e) The Commissioner may at any time (i) request the officer to return the non-lethal weapon or protective and defensive equipment; or (ii) instruct another customs officer to remove the non-lethal weapon or protective and defensive equipment from the officer s possession. 21

Use of non-lethal weapons in incidents where persons were injured 33.13 (1) Whenever a person is injured through the use of a non-lethal weapon issued to a customs officer, the officer must immediately submit a report on the incident to his or her supervisor. (2) An incident report referred to in subrule (1) must be submitted on Form.as published as a rule on the SARS website; and state (i) (ii) (iii) the circumstances in which, and the reasons why, the non-lethal weapon was used; the name and address and other personal details of the injured person that are available to the officer; the nature of the injury; (iv) whether any goods were damaged in the incident and, if so (v) (vi) (aa) the name and address and other personal details of the owner or person in whose possession the goods were that are available to the officer; and (bb) the nature and extent of the damage; whether the incident was reported to the South African Police Service, and if so, the Crime Administration System (CAS) number issued by South African Police Service; and any other information required on the form. Theft or loss of non-lethal weapons and protective and defensive equipment 33.14 (1) A customs officer to whom a non-lethal weapon or any protective and defensive equipment has been issued must immediately report to his or her supervisor any theft or loss of the non-lethal weapon or protective and defensive equipment. (2) A theft or loss report referred to in subrule (1) must be submitted on Form.as published as a rule on the SARS website; and state 22

(i) (ii) (iii) the circumstances in which the non-lethal weapon or protective and defensive equipment was stolen or lost; whether the incident was reported to the South African Police Service, and if so, the Crime Administration System (CAS) number issued by South African Police Service; and any other information required on the form. Non-compliance or negligence ground for disciplinary or dismissal or proceedings 33.15 A customs officer to whom a non-lethal weapon or any protective and defensive equipment has been issued is subject to disciplinary or dismissal proceedings if the officer contravenes or fails to comply with a provision of a rule contained in this Part; or acts negligently in the use of the non-lethal weapon or in his or her possession of the non-lethal weapon or protective and defensive equipment. Part 4: Customs patrol boats (section 751(1)) Crew of customs patrol boats 33.16 (1) A customs patrol boat must be operated by a team of customs officers consisting of a captain and at least three other crew members. (2) Customs officers operating a customs patrol boat must have the requisite skills and experience to operate the boat and its equipment. Boarding of vessels from customs patrol boats 33.17 When boarding another vessel from a customs patrol boat, the customs officer boarding the other vessel must be clothed in the official customs uniform; identify himself or herself by producing his or her identity card issued in terms of section 13 of the Control Act; and (c) state the reason for boarding the vessel. 23

Incidents involving the firing of patrol boat weapons 33.18 (1) Whenever a customs patrol boat weapon is discharged, the captain of the boat must immediately upon returning to base submit a report on the incident to his or her supervisor. (2) An incident report referred to in subrule (1) must be submitted on Form.as published as a rule on the SARS website; and state (i) the circumstances in which, and the reasons why, and the date and time the weapon was discharged; (ii) the name and other details of any vessel involved in the incident; (iii) whether any person was injured in the incident and, if so (aa) the name and address and other personal details of the injured person that are available to the captain; and (bb) the nature of the injury and whether it was fatal or not; (iv) whether any goods were damaged in the incident and, if so (aa) the name and address and other personal details of the owner or person in whose possession the goods were that are available to the captain; and (bb) the nature and extent of the damage; (v) whether any person was arrested during the incident and, if so (aa) the name and address, nationality and other personal details of person arrested that are available to the captain; and (bb) the reason for the arrest; (vi) whether the incident was reported to the South African Police Service, and if so, the Crime Administration System (CAS) number issued by South African Police Service; and (vii) any other information required on the form. (3) This rule does not apply if the weapon is discharged for purposes of official target practice. 24

Part 5: Other matters Taking and receiving of samples by customs officers (section 724(3)) 33.19 (1) A customs officer taking or receiving a sample of goods in the exercise of his or her powers in terms of section 724 of the Control Act must promptly issue a receipt for the sample to the person in physical control of the goods. (c) (d) (e) (f) (g) (2) The receipt must reflect the following particulars: a description of the goods from which the sample was taken; the quantity of the sample; the place where and the date on which the sample was taken; the name of the customs officer who took or received the sample; the purpose for which the sample was taken; the customs value of the sample; and whether the sample will be returned to the goods. (3) When taking or handling samples, a customs officer must follow any applicable health and safety guidelines; and official instructions, including any standard operating procedures regulating the handling and safeguarding of samples. (4) The rates applicable to special customs services apply when samples are taken on request by another or as a result of a refund application, tariff classification application or value determination. Directions to persons to formally appear before designated customs officers (section 730(2)) 33.20 (1) A notice issued to a person in terms of section 730 of the Control Act to appear before a designated customs officer to produce any goods or documents or to answer questions must be on Form.as published as a rule on the SARS website; and state, in addition to the matters referred to in that section 25

(i) (ii) particulars of the failure by that person to comply with a request by a customs officer to produce goods or documents or to answer questions, including (aa) the date on which and the place where the failure occurred; and (bb) the name of that customs officer; and the consequences for that person if he or she fails to appear before the designated customs officer at the time and place specified in the notice. (2) A person appearing before a designated customs officer may during the proceedings be assisted by another person, including a legal practitioner. Offences 33.21 A customs officer to whom a firearm has been issued is guilty of an offence if that officer contravenes a condition relating to that firearm contained in rule 33.6(ii), or (e); fails to comply with a request referred to in rule 33.6(f)(i); or (c) acts negligently in the use of that firearm and such negligence resulted in the death or wounding of a person. 26

CHAPTER 34 DETENTION, SEIZURE AND CONFISCATION OF GOODS Part 1: Detention of goods Other circumstances in which goods or documents may be detained (section 754(1)(c) and (2)(c)) 34.1 A customs officer may, in addition to the purposes set out in section 754(1) and of the Control Act, detain goods also for the purpose of investigating or determining whether the goods are goods to which an international agreement or an international obligation binding on the Republic which prohibits, restricts or controls the import into or export from the Republic, relates; and section 754(2) and, detain any document also for the purpose of investigating or determining whether any goods to which the document relates are goods to which an international agreement or an international obligation binding on the Republic which prohibits, restricts or controls the import into or export from the Republic, relates. Notices of detention (section 757(4)(d)) 34.2 A notice of detention must in addition to the particulars set out in paragraphs to (c) of section 757(4) of the Control Act, also reflect (c) (d) (e) (f) (g) the reference number and date of issue of the notice; the name and designation of the customs officer issuing the notice; the address of the place where the goods are detained; the name of the person referred to in section 757(1) to whom the notice is issued, and the customs code of that person, if that person has a customs code; in the case of goods in respect of which a clearance declaration has been submitted, the movement reference number of the clearance declaration; the transport document number in relation to the goods, if available; a general description of the condition of the goods; and (h) the date and time when inspection of the goods is scheduled to take place. 27

Request to be present when detained goods are inspected or opened (section 758(1)) 34.3 (1) A request by a person referred to in section 758(1), or that person s representative, to be present during an inspection of goods or during the opening of a package or container that has been detained, must be directed either orally or in writing to a customs officer; or submitted to the customs authority electronically through efiling. (c) (2) A request submitted in writing or electronically must reflect the customs code of the person referred to in section 758(1); the reference number of the notice of detention; and if the person contemplated in paragraph will be represented by another person during the inspection or the opening of the package or container, the name, capacity and contact details of that person. (3) A request in terms of this rule must be directed to a customs officer or submitted to the customs authority within 24 hours of issuing of a notice of detention in terms of section 757. (4) A person who directed or submitted a request in terms of this rule is entitled to be informed of the time appointed for the inspection or the opening of the package or container. Application for permission to remove detained goods from place where kept or stored (section 759(2)) 34.4 (1) Permission contemplated in section 759(2) of the Control Act must be obtained by submitting an application for permission to remove detained goods to the customs authority electronically through efiling, subject to paragraph. 28

If an application referred to in paragraph is submitted to the customs authority in paper format in circumstances where submissions in paper format are permissible, 8 the submission must be (i) on Form.as published as a rule on the SARS website; and (ii) made to the Customs Office serving the area where the detained goods are kept. (2) An application referred to in subrule (1) must reflect the following information in relation to the applicant: (i) The applicant s customs code; (ii) if the applicant is a (aa) (bb) natural person, the applicant s identity number or passport number; or juristic entity, the name of the person authorised to act on behalf of the entity, as well as that person s physical address, contact details, identity or passport number and designation; the current location of the detained goods; (c) (d) (e) the reference number of the notice of detention, if available; the movement reference number of the clearance declaration in respect of the goods; if the application relates to only a portion of the detained consignment, a description of the relevant goods, which description must include (i) (ii) (iii) the tariff classification; the quantity, volume or weight of the goods, as may be applicable; and any marks and numbers on the goods, if applicable; (f) a motivation setting out the reason why the facilities at the current location are not suitable for the detention of the goods and why the goods should be removed; (g) the physical address of the place to which the detained goods will be removed; (h) a description of 8 See section 913(4) of the Control Act. 29

(i) (ii) the security measures at the place to which the goods will be removed, to ensure that the integrity of the goods are not compromised; and the infrastructure, personnel and equipment available at that place to enable the suitable or specialised storage and handling required in respect of goods of that class or kind. (3) An application referred to in subrule (1) must be supported by any documents that can substantiate the information referred to in subrule (2). (4) Supporting documents referred to in subrule (3) must accompany the application referred to in subrule (2). Part 2: Seizure of goods Other circumstances in which goods may be seized (section 762(1)(d)) 34.5 The customs authority may, in addition to the circumstances set out in section 762(1) to (c) of the Control Act, seize goods if the goods were imported or exported in contravention of an international agreement or an international obligation binding on the Republic which prohibits, restricts or controls the import into or export from the Republic of those goods. Notice of seizure (section 763(4)(d)) 34.6 A notice of seizure must in addition to the particulars set out in paragraphs to (c) of section 763(4) of the Control Act, also reflect the reference number and date of issue of the notice; the name and designation of the customs officer issuing the notice; (c) if the goods were detained prior to seizure, the reference number of the notice of detention; (d) the address of the place where the seized goods are to be kept; (e) the name of the person referred to in section 763(1) to whom the notice is issued, and the customs code of that person, if that person has a customs code; (f) in the case of goods in respect of which a clearance declaration has been submitted, the movement reference number of the clearance declaration; 30

(g) (h) the transport document number in relation to the goods, if available; and the general condition of the goods. Applications for termination of seizure (section 765(3) read with 770) 34.7 (1) An application for termination of a seizure of goods as contemplated in section 765(1) of the Control Act, must within 30 days of the date of of seizure of the goods 9 be submitted to the customs authority electronically through efiling, subject to paragraph. If an application referred to in paragraph is submitted to the customs authority in paper format in circumstances where submissions in paper format are permissible, 10 the submission must be (i) (ii) on Form as published as a rule on the SARS website; and made to the Customs Office serving the area where the seized goods are kept. (2) An application for termination of seizure must in addition to the information required in section 765(3) reflect the following information in relation to the applicant: (i) (ii) (iii) The applicant s customs code or, if the applicant does not have a customs code, the applicant s name, physical address and contact details; if the applicant is a natural person, the applicant s identity number or passport number; if the applicant is a juristic entity, the name of the person authorised to act on behalf of the entity, as well as that person s physical address, contact details, identity or passport number and capacity; a statement that the applicant is the owner of the goods; and (c) the reference number of (i) (ii) the notice of detention issued in respect of the goods, if any; and the notice of seizure issued in respect of the goods. 9 If no application for termination of seizure is received by the customs authority within 30 calendar days from the date of seizure of the goods, the customs authority must in terms of section 766(2) of the Control Act confiscate the goods. 10 See section 913(4) of the Control Act. 31